All Forum Posts by: Kathy Leach

Unless you have a track record of doing business with these "associates" and know they will perform, I would not suggest forming an LLC with them. You should be able to collaborate with your separate entities. I made this mistake of forming an LLC with an associate and he wasn't able to perform on our business. He was too wrapped up in his own businesses and I was doing all of the work. I would have done it so differently.

If you choose to use LLCs, then you each have your own LLC and each LLC is a party to the Joint Venture Agreement (written up by an attorney) LLCs require careful maintenance in following the Operating Agreement in order to retain their value. Most investors don't have the personality to do that and their LLC becomes somewhat pointless. You can use Universal Coverage insurance which is much cheaper and easier to maintain for more protection. (In my humble opinion.)

You don't want to be subject to any of the other's relatives doing stupid things and you getting sued because you are all in one LLC or Partnership. Sounds odd, but that is how it works. So, maintain a professional business relationship and put barriers between liabilities.

Here's a post I did on LLCs that may help

DO You Need An LLC - It Gives Me Protection, Right? My Attorney / CPA Says That. . .

https://www.biggerpockets.com/forums/311/topics/1098136-do-you-need-an-llc-it-gives-me-protection-right-my-attorney-cpa-says-that

All my REIs are in an LLC! Why am I being personally sued?

https://www.biggerpockets.com/forums/926/topics/1097903-all-my-reis-are-in-an-llc-why-am-i-being-personally-sued

I suggest one of the LLCs is the one used to open a bank account and run all related income & expenses through it to avoid the accusation of commingling funds, to be able to write checks and to send and receive wire transfers. The IRS will appreciate it when they audit you. 

Hi Kadia. 

I just finished the Masterclass, and decided to do the mentorship as well. I don't know about open spaces, but I can say that Wrein is actually the first to totally grab my attention. I have been to several n person events, and watched several webinars. you tube, etc.  Most are focused on 1 thing. I loved that they talked about so many different strategies and so detailed. I got so much new information out of the class that I haven't heard anywhere else.  If you can get that much information out of a $17 week long class. I can only imagine the year long mentorship.  I have never paid more than a few hundred dollars for any type of class, either because I wasn't motivated by the speaker, or didn't feel I could learn more from it. Or maybe I wasn't ready yet.  I'm going for it. I feel confident that I will learn, and succeed with this mentorship, and make more than 10X what I invested.  I say go with your gut feeling.  #1mil$by2024.